Part 2: Payments for specific purposes
Part 2: Payments for specific purposes
Overview
The Commonwealth provides payments to the States for specific purposes in policy areas for which the States have primary responsibility. These payments cover most areas of State and local government activity, including health, education, skills and workforce development, community services, housing, Indigenous affairs, infrastructure and the environment.
Funding for public hospitals under the National Health Reform Agreement is the largest single specific purpose payment, estimated at $21.2 billion in 2018–19.
Schools funding under the Australian Education Act 2013 is estimated to be $19.5 billion in 2018–19, comprising funding for government schools of $7.7 billion and nongovernment schools of $11.8billion.
In 2018–19, the Commonwealth supports the States in two service delivery sectors through National Specific Purpose Payments (National SPPs) — Skills and Workforce Development and Disability Services. The States are required to spend each National SPP in the relevant sector. From 2018–19, the National Affordable Housing SPP will be combined with new funding for homelessness under the National Housing and Homelessness Agreement.
The National SPPs are indexed each year by growth factors specified in the Intergovernmental Agreement on Federal Financial Relations (the Intergovernmental Agreement). Funding is distributed among the States by share of population. National SPPs are estimated to be $2.5 billion in 2018–19.
Under the Intergovernmental Agreement, National Partnership payments to the States are the key vehicle to facilitate reforms or support the delivery of particular projects and services. National Partnerships are typically entered into for a fixed period of time, reflecting the nature of the project or reform involved.
To the fullest extent possible, payments under National Partnerships are aligned with the achievement of milestones and are made after the States have achieved the outcomes or outputs specified in the relevant agreement. National Partnership payments are estimated to be $13.8billion in 2018–19.
National Partnerships and other CommonwealthState agreements are publicly available on the Federal Financial Relations website at: Details of the appropriation mechanisms for all payments to the States and the terms and conditions applying to them are set out in Appendix E, available online.
Table 2.1: Total payments for specific purposes by category, 2017–18 to 2021–22
Table 2.1: Total payments for specific purposes by category, 2017–18 to 2021–22 (continued)
(a)As State allocations for a number of programs have not yet been determined, these payments are not included in State totals. As a result, total payments may not equal the sum of State totals.
(b)Includes financial assistance grants for local government and payments direct to local government.
Table 2.2: Total payments for specific purposes by sector, 2017–18 to 2021–22
(a)Includes financial assistance grants for local government.
Table 2.3: Payments for specific purposes by sector and category, 2017–18 to 2021–22
(a)Includes financial assistance grants for local government.
Further information on each of these payments is contained in this Part. Total payments to the States for specific purposes, categorised by functions, are set out in Appendix B, which is available online.
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Appendix A: Parameters and further information
Health
In 2018–19, the Commonwealth will provide funding of $21.5 billion to support State health services, including $21.2 billion in National Health Reform funding and $325.6million in National Partnership payments, as detailed in Table 2.4.
Table 2.4: Payments to support State health services
National Health Reform funding
In 2018–19, National Health Reform funding is estimated to be $21.2 billion. This is an increase of $2.2 billion, or 3.6 per cent, from 2017–18.
National Health Reform funding(a)
(a)National Health Reform funding in 2017–18 includes an adjustment of $774.6million related to services provided in previous years.
From 2017–18 to 2019–20, National Health Reform funding is linked to growth in public hospital activity and the national efficient price determined by the Independent Hospital Pricing Authority. Over this period, the Commonwealth will fund 45 per cent of the efficient growth in activity based services, with growth in total Commonwealth funding capped at 6.5 per cent a year.
At the meeting of the Council of Australian Governments in February this year, the Government committed to a new public hospital agreement that will provide $130.2billion over five years from 2020–21. Under this agreement, the Government will continue to fund 45 per cent of the efficient growth in activity based services, with growth in total Commonwealth funding capped at 6.5 per cent a year.
A new measure associated with National Health Reform funding is listed in Table 1.4 and described in more detail in Budget Paper No.2, Budget Measures 2018–19.
Final entitlement to National Health Reform funding, 2015–16
In April 2018, the Treasurer determined final entitlements for 2015–16 National Health Reform funding having regard to advice from the Administrator of the National Health Funding Pool and the Independent Hospital Pricing Authority.
National Partnership payments for health
A total of $325.6 million will be provided to the States in 2018–19 under the following categories:
•health services;
•health infrastructure;
•Indigenous health; and
•other health payments.
Health services
In 2018–19, the Commonwealth is estimated to provide $67.8 million to support the delivery of health services in the States.
2.4.1 Health services
National Partnership on additional assistance for public hospitals(a)
(a)Funding is indicative only and will depend on final entitlements to National Health Reform funding from 2017–18 to 2019–20.
The Commonwealth will provide funding to Tasmania and the AustralianCapitalTerritory if growth in National Health Reform funding is lower than growth in CPI and population in a given year.
National Partnership on comprehensive palliative care across the life course(a)
(a)State allocations from 2019–20have not yet been determined.
The Commonwealth will provide funding for new and innovative approaches to improve palliative and end-of-life care coordination for older Australians living in residential aged care.
A new measure associated with this National Partnership is listed in Table 1.4 and described in more detail in Budget Paper No.2, Budget Measures 2018–19.
National Partnership on expansion of the BreastScreen Australia program(a)
(a)State allocations from 2017–18 have not yet been determined.
The Commonwealth is providing funding to improve the early detection of breast cancer by continuing existing arrangements to expand the target age range of the BreastScreen Australia program from women 50to 69 years of age to women 50to74years of age. This builds on the existing BreastScreen Australia program, which commenced in 1991.
National Partnership on Hummingbird House
The Commonwealth is providing funding for the operation of a dedicated respite and hospice care facility for children with lifelimiting conditions and their families and carers.
National Partnership on management of Torres Strait/Papua New Guineacrossborder health issues
The Commonwealth is contributing to the costs of treating Papua New Guinean nationals who travel through the Torres Strait Treaty zone and access healthcare facilities in the Queensland health and hospitals network.
National Partnership on mosquito control and cross border liaison in the TorresStrait
The Commonwealth is providing funding to assist in mosquito detection and elimination in the Torres Strait. Funding also supports employment of a communication officer to improve communication and coordination between Australia and PapuaNew Guinea and reduce the spread of communicable diseases in the TorresStrait.
National Partnership on the National Bowel Cancer Screening Program — participant follow-up function(a)
(a)State allocations from 2018–19 have not yet been determined.
This initiative funds the followup of participants who return a positive bowel cancer screening test result and are not recorded as having attended a consultation with a health professional.
National Partnership on OzFoodNet
The Commonwealth is providing funding for a collaborative initiative with State health authorities to undertake enhanced surveillance of foodborne disease. The initiative aims to develop a better understanding of the causes and incidence of foodborne disease in the community and to build an evidence base for policy formulation. OzFoodNet coordinates investigations into foodborne disease outbreaks, particularly those that cross state and country borders.
National Partnership on Royal Darwin Hospital — equipped, prepared and ready
The Commonwealth is providing funding to maintain the National Critical Care and Trauma Response Centre at Royal Darwin Hospital in a state of readiness to respond to major health incidents in the region.
National Partnership on vaccinepreventable diseases surveillance
The Commonwealth is providing funding to improve surveillance reporting of nationally notifiable vaccinepreventable diseases. The program facilitates national monitoring, analysis and timely reporting of data to provide an evidence base for policy formulation.
National Partnership on the Victorian Cytology Service
The Commonwealth is providing funding to the Victorian Cytology Service which supports the early detection of precancerous cervical conditions by processing cervical screening tests undertaken by general practitioners and other health professionals.
National Partnership on Improving Health Services in Tasmania
The Commonwealth is providing funding for a package of measures to address pressures on the Tasmanian health system and improve healthcare outcomes for Tasmanians.
Improving patient pathways through clinical and system redesign component
The Commonwealth is providing funding to support clinical system redesign at the Royal Hobart Hospital and the Launceston General Hospital to alleviate pressure on emergency departments.
Subacute and acute projects component
The Commonwealth is providing funding to Tasmania to improve the wholeofsystem approach to subacute and acute services models. The funding also provides for continued services at the JohnL.Grove Rehabilitation Centre.
Health infrastructure
In 2018–19, the Commonwealth is estimated to provide $35.0million to support the development of health-related infrastructure.
Table 2.4.2 Health infrastructure
National cancer system
The Commonwealth is providing funding for infrastructure to deliver a world class cancer care system in Australia. The funding will help modernise cancer services and improve detection, survival and treatment outcomes, particularly for patients in regional and rural Australia.
Regional priority round
The Commonwealth is providing priority funding to improve access to essential health services for Australians living in rural, regional and remote areas.
National Partnership on the Albury–Wodonga Cardiac Catheterisation Laboratory
The Commonwealth is providing funding for a new laboratory that will enable local residents suffering from heart conditions to access quality care, without the need to travel long distances to capital cities.
National Partnership on the Proton Beam Therapy Facility
The Commonwealth will provide funding to support the establishment of a ProtonBeam Therapy Facility in Adelaide. The technology will be used as an alternative to conventional radiotherapy to treat people with certain types of cancer and for research.
National Partnership on Western Australia Hospitals Infrastructure package
The Commonwealth will provide funding to support expansions to the JoondalupHealth Campus and Osborne Parks Hospital facilities and refurbishment work to the Royal Perth Hospital that will improve health access and patient care for people in Western Australia.
A new measure associated with this National Partnership is listed in Table 1.4 and described in more detail in Budget Paper No.2, Budget Measures 2018–19.
Indigenous health
In 2018–19, the Commonwealth is estimated to provide $15.9million to the States for programs to improve the health of Indigenous people.
2.4.3 Indigenous health
National Partnership on addressing blood-borne viruses and sexually transmissible infections in the Torres Strait
The Commonwealth is providing funding to undertake disease prevention activities, testing and treatment, and sexual health checks, and to deliver a culturally appropriate sexual health education campaign.
National Partnership on improving trachoma control services for Indigenous Australians
The Commonwealth is providing funding for the continuation of trachoma control activities in jurisdictions where trachoma, an infectious disease which can lead to blindness, is endemic.
National Partnership on Northern Territory remote Aboriginal investment — health component
The Commonwealth is providing funding to supplement primary health care services in remote Northern Territory communities and position the Northern Territory for the longterm sustainability of its services to Aboriginal people. The funding includes support for the provision of integrated oral and hearing health services to children in remote communities.
This National Partnership supports the NorthernTerritory to improve outcomes in schooling, health, community safety and job creation for Indigenous Australians. Other elements of the National Partnership are discussed in the Community Services, Education and Affordable Housing sections of this Part.
National Partnership on rheumatic fever strategy
The Commonwealth is providing funding to programs that support, register and control acute rheumatic fever and rheumatic heart disease in Indigenous children.
Other health payments
In 2018–19, the Commonwealth is estimated to provide $206.9 million to the States for other health-related National Partnerships.
2.4.4 Other health National Partnership payments
National Partnership on encouraging more clinical trials in Australia(a)
(a)State allocations from 2017–18 have not yet been determined.
The Commonwealth is providing funding to increase the number and value of clinical trials to deliver health benefits, provide jobs and improve the nation’s innovative capacity.
National Partnership on electronic recording and reporting of controlled drugs(a)
(a)State allocations for 2017–18 have not yet been determined.
The Commonwealth will provide funding to support the incorporation of State system enhancements into the national electronic recording and reporting of controlled drugs system.
National Partnership on essential vaccines(a)
(a)2017–18 figures include expenses for services provided in 2016–17.
The Commonwealth is providing funding to improve the health of Australians through the cost-effective delivery of the National Immunisation Program.In 2017–18this National Partnership provides funding to the States for the purchase of some essential vaccines that had not yet transitioned to centralised purchasing arrangements. From 2018–19 all essential vaccines are purchased through Commonwealth arrangements.
A new measure associated with this National Partnership is listed in Table 1.4 and described in more detail in Budget Paper No.2, Budget Measures 2018–19.
National Partnership on the Health Innovation Fund(a)
(a)State allocations for 2020–21 have not yet been determined.
The Commonwealth will provide funding to support the delivery of projects in health prevention and the better use of health data.
A new measure associated with this National Partnership is listed in Table 1.4 and described in more detail in Budget Paper No.2, Budget Measures 2018–19.
National Partnership on the National Coronial Information System
This National Partnership is providing funding to support the administration, maintenance and improvement of Australia’s national coronial data base.
National Partnership on public dental services for adults(a)
(a)State allocations from 2017–18 have not yet been determined.
The Commonwealth is providing funding to support the improved oral health of patients who rely on the public dental system.
National Partnership on suicide prevention(a)
(a)State allocations from 2017–18 have not yet been determined.
The Commonwealth will provide funding to assist in reducing the risk of suicide by funding infrastructure projects, such as barriers, fencing and lighting, at identified locations.
Education
In 2018–19, the Commonwealth will provide funding of $20.1 billion to support State education services, including $19.5billion in Quality Schools funding and $544.4million through National Partnership payments, as detailed in Table 2.5.
Table 2.5: Payments to support State education services
(a)Includes payments for government and non-government schools. However, the non-government schools component is not included in the Memorandum item.
Quality Schools funding
The Commonwealth’s Quality Schools policy aims to improve the educational outcomes of Australian students and their schools.
In 2018–19, the Commonwealth will provide $19.5billion in Quality Schools funding to government and nongovernment schools in all States. This includes recurrent funding, capital funding, special circumstances funding for non-government schools, funding for non-government representative bodies, and other prescribed purpose funding.
Quality Schools funding
(a)Includes additional funding for students with disability.
(b)Includes funding for the NT to accelerate evidence based reforms to improve student outcomes for some of our most vulnerable children.
(c)Includes capital funding.
(d)Includes special circumstances funding, other prescribed purpose funding, targeted adjustment assistance for schools currently funded above 80 per cent of their schooling resource standard with negative growth during transition, nongovernment school reform support. As State allocations cannot yet be determined, this funding is included in the total for each year only. As a result, the total for each year does not equal the sum of State figures.
(e)Includes funding for non-government representative bodies.
The Government has implemented a new needs-based funding model for schools which delivers a consistent Commonwealth approach for all schools in all States.
National Partnership payments for education
In addition to Quality Schools funding, the Commonwealth will provide funding for State education services through a number of National Partnerships.
National Partnership on MoneySmart Teaching(a)
(a)State allocations from 2017–18, except for Western Australia and Tasmania, have not yet been determined.
The Commonwealth supports the delivery of professional learning to teachers in primary and secondary schools and the development of materials to improve financial literacy education in schools.
National Partnership on the national quality agenda for early childhood education and care
The Commonwealth has invested in the National Quality Framework which supports an integrated national regulatory system for early childhood education and care services, as well as outside school hours care services.
National Partnership on the National School Chaplaincy Program(a)